PM Modi's UAE Visit: A quick recap on how economic ties strengthened between India and UAE in last one year

Prime Minister Narendra Modi. (File photo)

Prime Minister Modi is scheduled to visit the UAE on February 13 to inaugurate the first Hindu temple in the country and participate in the World Government Summit 2024. Meanwhile, there was celebration in New Delhi after eight Indian naval officers, who had been sentenced to death by Qatar on charges of spying for a "third country," were released.

There have been five high-level visits between India and the UAE since July 2023. During PM Modi’s visit to the UAE in 2023, several Memorandums of Understanding (MoUs) were signed across sectors such as defence, education, and trade. Reports suggest that the two countries witnessed a bilateral trade volume of about $85 billion in the fiscal year 2022-23.

Here is a brief overview of how India-UAE ties reached new heights over the past year:

(A) The UAE was accorded the status of a Special Invitee for the G20 summit during India's Presidency, indicating the growing importance of the UAE in global affairs and its role as a strategic partner for New Delhi.

(B) The UAE has emerged as one of the top investors in India, particularly in terms of foreign direct investment (FDI). In the fiscal year 2022-23, UAE's investment in India positioned it among the top four countries contributing FDI into the Indian economy.

(C) The formal launch of a trilateral partnership among India, France, and the UAE in February 2023 marks an important milestone in regional cooperation and strategic collaboration. This trilateral framework aims to enhance cooperation and coordination among the three countries across various domains, including security, defense, trade, technology, and culture.

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(D) The first India-UAE Investment Summit held in Srinagar in March 2023 marked a significant step in bolstering economic ties between the two nations. This summit gave a platform for fostering closer cooperation and exploring new opportunities for investment and partnership across various sectors.

(E) New Delhi's support for the UAE in joining key international forums has strengthened bilateral relations and enhanced the UAE's global standing. In May 2023, with India's active support, the UAE became a dialogue partner of the Shanghai Cooperation Organization (SCO), signalling its growing engagement with regional security and cooperation initiatives in Eurasia. Additionally, the UAE's accession to the Brics group as a member on January 1.

(F) Three significant transactions occurred within the framework established for cross-border transactions, including gold, petroleum, and food commodities.

(G) The National Payments Corporation of India (NPCI) is poised to start the development of the UAE's national debit/credit card system, known as "Jaywan." Leveraging India's RuPay stack as a foundational framework, this endeavour signifies a noteworthy collaboration between the two countries in the domain of digital payments. Through this partnership, NPCI aims to extend its expertise and experience in constructing robust payment infrastructure to facilitate the advancement and modernisation of the UAE's financial ecosystem.

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(H) The Abu Dhabi Investment Authority (ADIA) is reportedly planning to establish its presence in Gujarat's International Finance Tec (GIFT) City. Additionally, ADIA invested $500 million in Lenkstart, while Mubadala invested $300 million in Cube Highways.

(I) An agreement has been signed for the purchase of 1.2 million metric tonnes (MMT) of LNG under a long-term 14-year deal, spanning from 2026 to 2039. This marks the first long-term LNG contract between India and the UAE.

(J) The interim campus of IIT Delhi in Abu Dhabi has been established in record time. The first Master’s course in energy transition and sustainability began on January 29, with Bachelor's and other programmes scheduled to start from September 2024.

(K) The first bilateral army exercise between India and UAE, named Desert Cyclone, was conducted in Rajasthan in January 2024. Additionally, in the same month, the first trilateral exercise called Desert Knight Exercise, involving the Air Forces of India, UAE, and France, was held at the Al Dhafra air base in the UAE.

(L) India and the UAE, along with other nations, jointly launched two initiatives during the G20 Leaders' Summit in September 2023. These initiatives are the India-Middle East Europe Economic Corridor (IMEEC) and the Global Biofuel Alliance.

(M) India became a part of the AIM for Climate (AIM4C) initiative in 2023. This initiative was introduced by the UAE and the US during the COP26 summit in Glasgow.